A bill of lading is a contract of carriage of goods.
A bill of lading is not merely a contract of carriage of goods but also a receipt and a document of title as well. The bill of lading is a commercial document. Moreover, bills of lading are the classic contract of carriage of goods. While charter parties are the classic contract of hire of a ship and so the bill of lading is a contract in respect to the goods.
Contract of carriage' covered by a bill of lading or any similar document of title, so such document relates to the carriage of goods by sea, including any bill of lading. Such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same.
The bill of lading has three characteristics:
(1) Receipt for the goods shipped.
(2) Evidence of the terms of the contract of affreightment.
(3) Document of title to the goods specified in the Bill of Lading.
Contract of carriage' applies only to contracts of carriage covered by a bill of lading or any similar document of title, in so far as such document relates to the carriage of goods by sea, including any bill of lading or any similar document as aforesaid issued under or pursuant to a charter party from the moment at which such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same.
The Receipt Function.
The receipt function of the Bill of Lading is governed by Article III Rule 3 of the Hague Rules. Which indicate the identification of the shipped goods, the number of packages, pieces, quantity, or weight of the goods shipped, and the apparent order or condition of the goods at the time of loading.
The receipt function of a Bill of Lading therefore is evidenced by the document itself since information as to the nature and quantity of goods, and the port and time of receipt of goods is stated in designated fields.
In Grant v Norway case emphasized that the signature on the Bill of Lading by the ship’s master, affirming that he has received the goods is what makes the Bill of Lading an official receipt.
Evidence of Contract of Carriage Function.
It is evidence about a valid contract of carriage of goods by sea. A bill of lading is itself a piece of paper which create relation between the carrier and shipper, whereas carrier issued it to the shipper through this paper it make the ground of acknowledge about the particular goods which have been received as cargo. A charter party normally lays down the terms and conditions of carriage, including specifying the vessel that shall ferry the goods, the ports of loading and unloading, and mode of payment, a description of the goods to be ferried. The charter party is a separate contract from the sale contact between the buyer and the seller of goods. This proof is provided by the Bill of Lading.
A bill of lading can be considered as a trade purposes. In short the bill of lading is evidence of the contract of carriage of goods. So, it is not a contract but it is only evidence of the contract. Essentially, the transfer of a Bill of Lading imposes rights and liabilities on the subsequent holder vis-a-vis the carrier.
Bill of lading is a document of title.
The bill of lading is a typical document of title. The bill of lading is invested with particular attributes of great practical importance commercially. This enables it to become one of the key instruments in international trade. A document of title to goods is a written document which proves that the person indicated therein as the owner of goods has title to them, and which when transferred from the indicated owner of the goods to another party, transfers title to those goods to that other party, even though the goods may not be in the physical possession of the original owner.
A Bill of Lading is considered by merchant custom as a document of title to goods specified therein. The passage of title to goods specified in a Bill of Lading is customarily done by endorsement. Endorsement enables title to the specified goods to pass even though the goods are in transit. As such, the endorsee is entitled to claim the goods once the ship carrying them docks at the port of discharge.
Stages in a Letter of Credit Transaction
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Importance of Bill of Lading
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